For a better experience please change your browser to CHROME, FIREFOX, OPERA or Internet Explorer.

Cost of Running a POS Business in Nigeria (2023)

Since the first outbreak of Covid-19, the importance of so many businesses have been redefined. One of them is the Point of Sale terminals popular referred to as POS machine by most Nigerians.

Point of Sale is a payment means where marchants transact with bank accounts belonging to consented customers and primarily for the goods or services rendered to these customers.

These days, the POS is rapidly replacing the Automated teller machines popularly called the ATM, even when the use of ATMs don’t come with extra charges or commission, still people find the extra service pay worthwhile. What could be the cause of these?

Point of Sale Machine giving out Teller
Since Corona Virus came with it’s own restrictions in financial institutions like banks where people usually come to do business before the outbreak without any fear of contracting the disease, the cashless mode of payment introduced by Central Bank of Nigeria in 2012 triumphed.

Since POS services present a more quicker and faster means of banking and in essence serving as a mini banking system, so many Nigerians, Africans or the World at large now patronize the services this avenues have got to offer.

How much it costs to start a POS Business in Nigeria

The POS business is one of the ways to make cool cash in 2021 especially in areas where ATMs or banks are not comfortably serving or close to a customer. One who wishes to make more money in that case can easily consider it.

The purpose of this article is based on giving you an appraisal of the setup cost of a typical Point of Sale in Nigeria, let us start by talking about things POS marchants did before starting this business from the scratch.

Registering with the Corporate Affairs Commission

As it is the norm for businesses serving the public in Nigeria to have their businesses registered. This is usually done before even thinking about that venture, the minimum cost of getting a business registered in 2021 amounts to about ₦15,000 without an agent and also depending on the business entity under which the POS is to operate.

Ownership of an existing business

It is required for one to have a business that has been operated for a minimum of one year in Nigeria before venturing into a POS business.

A designated location for POS

Apart from having your own business in operation already, a physical address is required for one to begin a POS. You can merge it with your existing hustle or set it up completely as a different department.

Note: The cost involved in owning an existing business cannot easily be quantified while that involved in constructing a shop can be determined by the individual and varies from one person to another

Request for POS from Commercial banks

Depending on the bank you choose, and depending on the banks POS issuance policy, you can always get a working point of sale machine for free from most Nigerian banks.

In most cases, you will be required to have a corporate, current or even a savings account with them. The machine is free as far as you get it from banks. Banks usually make up for this cost as a predefined commission is levied on each successful transaction you perform with these equipment.

Which Nigerian Banks supports Point of Sale service?

All Nigerian banks give and encourage their customers, dealers and other individuals to be their agents in the POS business. They include but not limited to:

  • Access Bank
  • Diamond Access Bank
  • Fidelity Bank
  • First Bank of Nigeria
  • First City Monument Bank
  • Guarantee Trust Bank
  • Heritage Bank
  • Union Bank
  • United African Bank (UBA)
  • Sterling Bank
  • Zenith Bank

So, you can easily go to anyone of these banks and apply now for cheaper deals.

POS through third party / Dealers

One of the good things about this cashless machine is that you can rent, hire, lease or even go for a completely new set of working POS tools. If in any case you feel that it is rather rigorous or time-consuming to approach the Nigerian Commercial banks, you can meet with third part agents to cut the process short.

The disadvantage in this case is that it could be more expensive

Notable Running Costs to consider

  1. Cost of power supply.
  2. Since it is a capital intensive business, you will need cash at hand.
  3. Maintenance costs.P
  4. type to be handled by the machine since debit cards incur a processing fee

Uses of Point of Sale in Nigeria

POS is used by Small and medium business enterprises for cashless transactions which range from:

  • Withdrawals and transfers of funds.
  • Payment of bills and other utilities.
  • Saleso of airtime.

Now you know the cost involved, male wiser decisions before starting. Use the comments box to tell us what you think about this revealing piece.

leave your comment

Your email address will not be published. Required fields are marked *

Post Free Advert